Nike net income down 18% in Q2 

(MENAFN) Nike Inc. CEO, Mark Parker, said that the world's largest athletic gear maker's second-quarter net income dropped 18 percent to USD384 million, from USD469 million a year ago, reported AP.

Parker said that revenue in the period grew 7 percent to USD5.96 billion, compared with 2011's USD5.55 billion; moreover, Nike brand revenue went up 11 percent, whereas revenue from other brands, including Converse, Hurley and Nike Golf, edged up 6 percent.

He added that in the 3-month period ended November 30, sales in China declined 11 percent and fell by 2 percent in Western Europe, however, sales in North America jumped 17 percent, driven by demand for basketball shoes and NFL gear, while sales in emerging markets rose 11 percent.

The CEO noted that higher selling prices and lessening raw material costs were offset by higher labor costs and fluctuations in foreign currency exchange rates.

Orders for Nike shoes and apparel to be delivered between December and April gained 6 percent from last year's same period, reaching USD9.3 billion.

Furthermore, inventory in North America climbed 14 percent, whereas that in greater China fell 6 percent.

It is worth noting that in the second quarter, the company completed the sale of its Umbro and Cole Haan brands to focus on its more profitable lines, including the namesake Nike brand.